Dear Customer,
Markets always tend to be interesting with something or the other happening all the time. Our Morning Mantra is released before the opening bell and it includes the market commentary along with Corporate & Global news for the day.
- U.S. stocks closed higher Friday for a third week of gains as mixed data pushed out expectations for the timing of the first rate hike.
| Dow Jones | 17216.0 | +74.2 | +0.43% |
| Dow Jones Fut | 17080.0 | -35.0 | -0.20% |
| Hangseng | 23018.4 | -48.9 | -0.21% |
| Nikkie | 18190.4 | -101.4 | -0.55% |
| SGX Nifty | 8251.5 | -9.5 | -0.11% |
- Asian stocks pared losses with Australia’s dollar as China reported third-quarter economic growth that beat estimates.
- Market is expected to open on a flattish note and likely to remain range bound during the day.
- Amtek Auto is close to reaching a solution with JPMorgan, which holds its non-convertible debentures worth Rs 200 crore. The balance Rs 600 crore of Amtek Auto's NCDs are held by banks. These will be realigned to the company's cash flow and not be due for payment immediately.
- Lanco Infratech had won a case in the Supreme Court for its subsidiary company Lanco Kondapalli Power Limited (LKPL), dismissing appeals filed by Andhra Pradesh Power Coordination Committee and AP Discoms and also upholding the orders passed by APTEL and APERC in favour LKPL. As a result of this favourable order LKPL is entitled for reimbursement of income-tax of about Rs 175 crore for financial years 2001 to 2012 along with interest till an date of payment after adjusting the adhoc amount of Rs 70 crore already received.
- India's plan to raise as much as $3.3 billion from selling a 10% stake in Coal India Ltd could be thrown off course by global investment banks under pressure from environmental groups to steer clear of the share sale.
- Mahindra and Mahindra rolled out two new products -- the Supro Van in the passenger van segment while the Supro Maxitruck in load carrier category
- NBCC has bagged Rs 126.33 crore project in Telangana for carrying out civil works at different colleges of Acharya NG Ranga Agricultural University (ANGRAU) in the state.
- The Vedanta group signed an early agreement to invest around Rs8,400 crore to expand and develop its mineral and mining base in Rajasthan.
- Crompton Greaves Ltd has entered into a definitive agreement for sale of a portion of its land parcel at Kanjurmarg, Mumbai, to Evie Real Estate for an aggregate sum of Rs 496.48 crore.
- Monsanto has moved court against eight domestic seed companies for refusing to pay over Rs 400-crore 'trait fee'. Prabhat Agri Biotech, Ajeet Seeds Ltd, Kaveri Seed, Ankur Seeds, Nuziveedu Seeds, Green Gold Seeds, Ram Agrigenetics and Amar Bio Tech - have refused to pay the dues, citing the state governments' price control order on cotton seeds.
- Jindal Poly – Management Meet Note: We met the Management of Jindal Poly. Company is largest player in BOPET and BOPP films with market share of 28% and 40% respectively in India. Company acquired BOPP film business of Exxon Mobil in Europe 2 year back and US with 5 plants for US$216mn and with that company got 5% market share in World for BOPP film. Management has given positive outlook for the domestic film industry. The Gross margin which increased from 28% in FY14 to 31% in FY15 and 38% in Q1FY16 is sustainable in near term as capacity utilization has improved substantially and no new capacity are coming up in next 6-9 months. The performance of International business has also improved substantially as the Ebitda margin post acquisition has increased from 3% to 8% in FY15 because of the various measures taken by company. The margin in further likely to improve to 9% in FY16. The initial calculation suggests Jindal Film can do Sales of Rs 2,664cr, EBITDA of Rs.499cr at standalone level and Sales of Rs.5,062cr, EBITDA of 455cr at International level. Company hold 60% holding in International company as such Attributed Consolidated EBITDA to Jindal Film will be Rs.733cr. At EV/EBITDA of 6x and Debt outstanding of Rs. 1400cr The market cap works out to Rs.3600cr. Company has invested Rs.415cr till FY15 in group power company in the form of redeemable preference share and Further likely to invest Rs.300cr in FY16 in that project. Power company has setup 1200MW pit head power plant in Orissa and is struggling in absence of PPA for power sales. Company is going for 5 / 25 restructuring. Post this Rs.300cr investment Jindal Poly will not have to do any further investment in Power venture. Excluding Rs.300cr from Market cap the Balance works out to Rs.3300cr or Per share value of Rs.750 on diluted Equity post merger of Jindal Photo. About proposed QIP approval company has taken from Board the management has said it is more of an enabling resolution and has not plan to raise fund immediately. If company plan for any expansion or acquisition than company may raise this money.Overall outlook positive.
- Institution Desk - Trade Data – September 2015 - Trade Deficit Narrows On Faster Decline In Imports: Following the 10th consecutive decline in Indian merchandise exports in September 2015 and imports contracting by the highest pace in the past six years, the trade deficit narrowed last month. Notwithstanding a weaker Indian Rupee (INR), declining global demand kept exports subdued, while the high-base effect led to a faster decline in imports. Although the fall in exports was broad-based, exports of ‘drugs and pharmaceuticals continued to grow in September 2015. On the other hand, while imports of industrial items (capital goods and commodities) contracted in the past couple of months, India imported a record amount of crude oil and petroleum products (in volume terms) in 2QFY16. Overall, India’s trade deficit was US$35.8bn in 2QFY16, worse than US$32.2bn in 1QFY16 but better than US$39.4bn a year ago. Accordingly, we expect the current account deficit (CAD) to widen from US$6.2bn (1.2% of gross domestic product or GDP) in 1QFY16 to US$8.7bn (1.7% of GDP) in 2QFY16.
- Results announced
| Swaraj Engines |
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| CRISIL - Insti |
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| V-Guard - Insti |
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| International Combustion India |
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| Reliance Inds |
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| Edelweiss Financial |
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| Unichem Labs |
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| NIIT Tech |
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| RS Software |
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| Revathi Equipment |
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| Tata Metaliks |
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| Tata Sponge |
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| Agro Tech Foods |
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| Bhansali Engineering Polymer |
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| Menon Bearing |
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| South Indian Bank |
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- Results to be announced (PAT Rs cr)
19-Oct | Sept'14 | June'15 | Expectation | NB Insti |
| Blue Star Infotech Ltd. | 5.7 | 7.3 | na | na |
| GATI Ltd. | 6.9 | 7.8 | na | na |
| Gruh Finance Ltd. | 47.8 | 50.3 | 57.4 | na |
| Heritage Foods Ltd. | 4.8 | 10.7 | na | na |
| Hindustan Zinc Ltd. | 2183.5 | 1920.8 | 1964.7 | na |
| Kesoram Industries Ltd. | -250.6 | 0.0 | na | na |
| Kitex Garments Ltd. | 19.3 | 16.0 | 26.5 | na |
| Maharashtra Scooters Ltd. | 47.7 | 2.0 | na | na |
| Motilal Oswal Financial Services Ltd. | 32.7 | 28.4 | na | na |
| Orient Cement Ltd. | 43.3 | 27.9 | 25.3 | na |
| Petronet LNG Ltd. | 262.8 | 247.5 | 199.4 | na |
| SKS Microfinance Ltd. | 56.8 | 61.2 | 66.0 | na |
| Thangamayil Jewellery Ltd. | -12.4 | 3.6 |
